Is the cryptocurrency market having a volatile future?

The last few years have seen a lot of momentum garnered on the concept of ‘Cryptocurrencies’. A lot has been shown in the news and a lot has also been written about how these new ‘digital currencies’ are the talk of the town. But as a person who always thinks several time before spending his hard earned money on anything trivial have had all your thoughts cleared and doubts wiped off in understanding what cryptocurrency actually is? If you haven’t we at ETS India, offer to help you understand this new concept and the way it functions. As a leading block-chain development company we aim to help our clients understand the concept of a ‘block-chain’ protocol through customized algorithms.We have our own team of experts, who specialize in programming Block chain, ICO token development, Crypto Coin Creation, communication protocols and cryptography to help you launch your next bitcoin or cryptocurrency as the most reliable Crypto currency development company.

What is cryptocurrency?

Cryptocurrency is a form of digital currency or a digital medium of exchange for which encryption techniques are used to regulate its use and generate its release. They are unlike normal currencies like the US Dollar, Euro or Pound running in a particular country and regulated by a central government body or financial authorities. Instead of such regulations, it depends on the internet to guarantee its value and confirm transactions. It is the users on the network who verify every transaction and then the transactions go on record for everyone to see in the network. The verifications keep a check so that the same currency is not used or spent twice. A few examples of cryptocurrency are Bitcoin, litecoin, monero, peercoin, ripple, monero and dogecoin.

Blockchain technology

The digital transactions are recorded in a digital ledger known as ‘blockchain’. Data on transactions is recorded in each block and gets added to the blockchain once it is verified by all the users in the network as a valid transaction or transfer. The blocks once added cannot be removed from the chain. Blockchains forms a digital domain or platform that help enable trading of cryptocurrencies. Although cryptocurrencies have not been legalized in India, the best blockchain development companies are endlessly striving hard to develop secured and safe blockchain platform to enable flexible use of cryptocurrencies. Another feature of Blockchain that makes it absolutely secure is the fact that they are decentralized and are distributed across various peer-to-peer networks scattered all over the world. These networks are constantly been updated and are kept in synch. Experts are of the opinion that the bigger and complex the network and domain is the safer it will be securing all transactions.

Concept of mining

The process of releasing digital cryptocurrencies to the world is known as ‘mining’. In order to do so users have to first of all solve a computational puzzle called ‘hash’. Once you solve the hash you are rewarded with a block or an amount of cryptocurrency. This block is then added to the blockchain for all the miners across the network to see.

Volatility is always the truth

The underlying truth of cryptocurrencies is that they are always volatile as they are not controlled by a physical entity and emerge each day. Just like other commodities cryptocurrencies too are driven by the simple principle of ‘demand and supply’ meaning that price rise when there is a demand to buy and price decreases when there is a demand to sell. The ability to useCryptocurrencies gives us a new way to store and spend our money digitally.  The technology is relatively new and evolving each time a new block is created; a new transaction takes place. The rates of exchange are also varied meaning that the amount you spend on a particular day is likely to vary the very next day. Moreover the lack of institutional capital makes it a totally unpredictable as it does not result in the formation of any physical resource or wealth. Its acceptance is also very low as a medium of transaction due to the absence of any form of ‘hard data’ available on it making users rely on mere instincts and speculations.In spite of the fact that it is a product of technology, it is also very hard to predict where and at what rates the market will settle down considering that new ones evolve everyday.It will still take time for it to be accepted and widely used as a mode of payment but its growth is outstandingly rapid making it a very important means of financial transaction worldwide in the near future. But we can be hopeful that with new innovations coming in cryptocurrencies will soon become the most favored means of transactions very soon. The best blockchain development company will help you to enable Crypto currency development for your business functions.